Are we in the market for buying? - Zillow Real Estate Advice

My girlfriend and I are sick of paying $1100 per month for rent. We currently live near?Minneapolis?and plan on staying around this area. I make around $55k per year and have about $250 in monthly installment debt and about 25k in total debt. My problem is my credit score of 580.

My girlfriend is the opposite...She brings home about $30k, but has a 750 credit score. She also has about $500 in monthly installment debt. We have been together for over 4 years and plan on getting engaged very soon.

We are looking at this home on Zillow: 12626 Freeway Dr W. Hugo, MN.

Should we be looking into buying at this point? It seems like taking out a home loan would lower our monthly rent/mortgage payment to help us clear our other debts. Also, this home was valued at $260k in Dec 2006 and is on the market for just $115k. If the market value bounces back in the next 5-10 years and we end up gaining equity, doesn't this lower the "risk factor" of buying?

As you can tell, this would be our first home-buying experience..

Thanks!

Source: http://www.zillow.com/advice-thread/Are-we-in-the-market-for-buying/469415/

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